Profit taken on EUR/USD long, buy AUD/USD at 0.7145

MyFXspot.com Trade Ideas
EUR/USD: profit taken at 1.1570, buy again at 1.1480, take profit at 1.1720, stop-loss 1.1370
USD/JPY: short opened at 108.50, take profit at 105.50, stop-loss 110.00
USD/CAD: sell at 1.3350, take profit at 1.3010, stop-loss 1.3485
AUD/USD buy at 0.7145, take profit at 0.7350, stop-loss 0.7050


Market overview
The Australian dollar is on track to end the week with solid gains on Friday, buoyed by another promise of policy patience from the Federal Reserve and news of a new round of talks on the Sino-U.S. trade dispute.
The Aussie got a domestic lift from data showing retail sales just pipped forecasts with a rise of 0.4 percent in November, suggesting consumer spending picked up somewhat after a very soft third quarter.
Risk sentiment had already got a fillip when U.S. Treasury Secretary Steven Mnuchin said Chinese Vice Premier Liu He will "most likely" visit Washington later in January for trade talks.
The tentative sign of progress was enough to push the Chinese yuan to its highest since July, and the Aussie was dragged along as a liquid proxy.
Weighing on the U.S. dollar was another round of dovish comments from top Fed officials. Chairman Jerome Powell on Thursday stressed the central bank would be patient and careful on further rate increases.
Vice Chair Richard Clarida said it would not want to wait too long before responding to a persistent slowdown in global growth before adjusting policy to offset that.
The ensuing lift sees a new short-term high set. Further gains are likely as RSIs are biased up, a long lower wick forms on today's candle and the 55-DMA gets pierced again. We have placed a bid at 0.7145.

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